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Thread: No pensions or retirement income?

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    #1

    Wow No pensions or retirement income?

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    We are watching Suze Orman and there are a lot of families on here that have nice pensions to supplement their income. So, I'm like, "See, this is why you should stay in and retire." Then he tells me that they don't do pensions anymore or retirement money and that's why they want them to invest in the TSP. I really can't believe that, but there is a lot about the military that I don't understand.

    Can anyone shed some light on this for me, please?
    Married to MacGirl, chasesbabygurl, An Everyday Love and *Larz* 12-20-2009
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    He is wrong. The military has retirement pay. For most people it's 50% of the highest three years of his base pay at 20yrs time in service and it goes up from there at 2.5% a year. My husband has been in almost 28 years. If he stays till 30 he will receive 75% of his base pay until he dies. If he retires at 28 it’s 70%. (there is another fairly unpopular plan called REDUX that allows you to take a “bonus” at year 15 but they you get a lower percentage of base pay unless you stay in till 30)

    TSP is sort of like a 401K plan, but has nothing to do with the pension one earns for staying 20+ years.

    ETA: Here is a calculator: http://militarypay.defense.gov/retir...alc/index.html
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    #4
    There was talk about changing things but so far nothing has been done.
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    #5
    Quote Originally Posted by Beach View Post
    He is wrong. The military has retirement pay. For most people it's 50% of the highest three years of his base pay at 20yrs time in service and it goes up from there at 2.5% a year. My husband has been in almost 28 years. If he stays till 30 he will receive 75% of his base pay until he dies. If he retires at 28 it’s 70%. (there is another fairly unpopular plan called REDUX that allows you to take a “bonus” at year 15 but they you get a lower percentage of base pay unless you stay in till 30)

    TSP is sort of like a 401K plan, but has nothing to do with the pension one earns for staying 20+ years.

    ETA: Here is a calculator: Retirement Calculators


    As someone who has a husband that has retired within the last few years I can assure you pensions are alive and kicking.
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    #6
    Currently, the military still has their retirement. I know that has been on the cutting block many times with congress though. People do prepare and, currently, there is talk about going away with it. Many of the young guys are thinking they aren't going to get it and want to invest in the TSP as much as possible to protect against the possibility it may happen.
    "Obstinacy is a fault of temperament. Stubbornness and Intolerance of contradiction result from a special kind of Egotism, which elevates above everything else the pleasure of its own autonomous intellect, to which others must bow.: Carl von Clausewitz
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    #7
    Could he be saying it, OP in case he doesn't want to stay in and retire? Maybe he's not planning on being a lifer and doesn't really know how to tell you straight up.
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    Quote Originally Posted by Frybread View Post
    Could he be saying it, OP in case he doesn't want to stay in and retire? Maybe he's not planning on being a lifer and doesn't really know how to tell you straight up.
    He is good at being straight up. Sometimes, too straight up actually LOL. He goes back and forth from time to time. Like, he will get pissed off and say, "F this, I'm getting out." But, I keep reminding him that civilian jobs aren't much better. He just reenlisted and was on the fence for a long while so we are just taking it 4 years at a time.

    He probably just overheard someone talking about it at the smoke pit and took it for a fact. Silly boy!
    Married to MacGirl, chasesbabygurl, An Everyday Love and *Larz* 12-20-2009
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    #9
    Quote Originally Posted by DakotaCowgirl View Post
    Currently, the military still has their retirement. I know that has been on the cutting block many times with congress though. People do prepare and, currently, there is talk about going away with it. Many of the young guys are thinking they aren't going to get it and want to invest in the TSP as much as possible to protect against the possibility it may happen.
    It’s been said multiple times that if the retirement system does change those currently in will be grandfathered.
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    #10
    Quote Originally Posted by Beach View Post
    It’s been said multiple times that if the retirement system does change those currently in will be grandfathered.
    There was talk that you had to be a certain years in to be grandfathered. It was something like 16 and before that, they were going to just give a settlement to put where they wanted.

    Who knows. As of right now, it is still the same. When that changes, it will change. If not, then don't worry about it until it happens.
    "Obstinacy is a fault of temperament. Stubbornness and Intolerance of contradiction result from a special kind of Egotism, which elevates above everything else the pleasure of its own autonomous intellect, to which others must bow.: Carl von Clausewitz

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